Winning with AP automation and the Virtuous Vendor Cycle

There are many benefits to automating your AP process including saving employee time, adding efficiencies to the invoice process and gaining better insight into company spend. But another positive aspect is vendor satisfaction. That’s right – automating your invoice payment process is a big plus for your vendors and sets the stage for what is a virtuous vendor cycle. This cycle starts when, thanks to automated AP, your vendors know they can rely on you to get paid on time. This keeps them happy and more eager to do business with you. Some may even offer additional benefits as part of their service to your organization, creating a cycle where everyone is happy and everyone wins. Here’s how it works:

Put an end to the “When am I getting paid?” phone call

Invoice automation not only saves you from manually routing and tracking down invoices but also puts an end to phone calls from vendors asking about payment status. With AP automation, vendors have access to a portal to be able to quickly and easily check status and payment date on their own. Vendors appreciate the transparency and time savings and you no longer get the pit in your stomach when your phone rings.

Save money and help your bottom line

Consistently paying on-time or even early means you avoid late-payment penalties and interest charges. Some companies value getting paid early so much that they’ll even reward customers for early payment and/or offer discounts on future purchases. We don’t need to explain why paying less for anything is a smart idea for your P&L.

Be a star customer – and get treated that way

Vendors like doing business for companies that pay them on time (or early) and are hassle-free to deal with. They have an interest in keeping your business for the long term, so when you need something faster than usual or have a special request, they’ll bend over backwards to make it happen.    

Bask in the light of the halo

Word travels far and wide if you’re late paying or you have unpaid invoices. Unhappy vendors share their displeasure with others. Luckily, the inverse is equally important to maintaining a “halo effect” where your positive reputation attracts repeat and even new business because organizations know your solid reputation will benefit them as well.

To learn more about how Concur’s vendor portal can keep your invoices in order and your vendors happy, contact your client sales executive.

Automating your accounts payable can benefit your organization and your vendor relationships, visit Concur.com for additional resources.